After getting the green light to proceed to a trial in March of 2025, Tesla and Rivian have reportedly reached an agreement to settle their trade secret dispute out of court. Tesla and Rivian officially filed for dismissals in mid-December and the Court subsequently close the case. This will mark the end of one of the highest-stakes EV battery trade secret battles between two major competitors in the industry.

Tesla filed the trade secrets lawsuit against Rivian, one of Tesla’s main competitors in the EV industry, back in July of 2020. Telsa alleged that Rivian recruited and subsequently employed Tesla employees who divulged Tesla’s proprietary information concerning Tesla’s EV battery technology. According to Tesla, Rivian encouraged these employees to steal Tesla’s trade secrets and confidential documentation and bring that information directly to Rivian.

Over the past four years, Rivian has been fighting to dismiss Tesla’s allegations, arguing that the trade secrets allegations lack merit and Tesla is using the lawsuit to tactically disadvantage its competitor. Rivian’s repeated legal attempts to dismiss Tesla’s allegations, however, have been unsuccessful, culminating in the court’s most recent decision. Rivian’s failed in its attempts to have the lawsuit dismissed, and in August, the California state court determined there was enough evidence to proceed to trial in March 2025. Now, the parties appear to have reached an agreement to settle their dispute prior to trial, however, the details of the potential settlement have not been released to the public.

Tesla has been at the forefront of EV trade secrets litigation, aggressively enforcing its intellectual property rights against competitors. As Proskauer has reported in its EV Trade Secrets Litigation Series, Tesla has filed trade secret misappropriation lawsuits against its equipment supplier, Matthews International Corp., former employees who started a competing company, and this case against Rivian.

Despite a recent trend in increased EV trade secrets litigation, the case between Tesla and Rivian would have been one of the first major EV cases between competitors to proceed to trial. While it appears the trial will no longer be going forward, Tesla’s enforcement efforts underscore the importance for EV companies to be vigilant in their approach to trade secret management. This includes implementing rigorous internal policies to protect sensitive information, regularly training employees on confidentiality obligations, actively monitoring for any signs of intellectual property theft, and being prepared to take immediate and decisive legal action when breaches occur. Proskauer’s extensive legal and technical expertise can help EV companies navigate these complex issues, ensuring they are well-prepared to protect their own intellectual property or defend against potential allegations.

Posted in EV Trade Secrets Litigation Series, Trade Secrets
Tags: EV Industry, litigation, trade secret misappropriation, trade secrets
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Photo of Baldassare Vinti Baldassare Vinti

Baldassare (“Baldo”) Vinti heads Proskauer’s Intellectual Property Litigation Group.

Baldo’s practice focuses on litigating patent, false advertising, trade secret, life sciences, trademark and contractual matters in federal and state courts and before the International Trade Commission. He is a seasoned trial attorney responsible…

Baldassare (“Baldo”) Vinti heads Proskauer’s Intellectual Property Litigation Group.

Baldo’s practice focuses on litigating patent, false advertising, trade secret, life sciences, trademark and contractual matters in federal and state courts and before the International Trade Commission. He is a seasoned trial attorney responsible for all aspects of litigation, including Markman hearings, appeals before the Federal Circuit, case preparation and strategy, depositions, motion practice, and settlement negotiations. He has represented clients in high-stakes matters involving a broad range of technologies, including medical devices, diagnostics, immunoassays, prosthetics, pharmaceuticals, dental implants, electronic medical records systems, encryption technology, wound dressings, digital video compression, electronic book delivery and security systems, mobile media technologies, navigation and location-based services, bandwidth management, bar code scanning, lasers , and other technologies. Baldo has represented numerous major corporations, including Arkema S.A., British Telecommunications PLC, Church & Dwight Co., Inc., Henry Schein, Inc., Maidenform Brands Inc., Mitsubishi Electric Corp., Ossur North America Inc., Panasonic Corp., Sony Corp., Welch Foods, Inc., and Zenith Electronics LLC.

In addition, Baldo regularly handles transactional work, including intellectual property due diligence, licensing, intellectual property structural transactions, patentability studies, infringement/non-infringement opinions, and client counseling in intellectual property matters.

Baldo is an author and frequent commentator on patent issues pertaining to medical devices and a host of other intellectual property topics, and has been quoted in the National Law Journal, Bloomberg BNA, Law360, Westlaw Journal and Inside Counsel magazine. He is also a regular contributor of articles published in Medical Product Outsourcing magazine that deal with the medical device industry.

Baldo served as a judicial intern for Hon. John E. Sprizzo of the United States District Court for the Southern District of New York and for Hon. Charles A. LaTorella of the New York Supreme Court.

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Photo of Elizabeth Shrieves Elizabeth Shrieves

Elizabeth (Beth) Shrieves is an associate in the Litigation Department and a member of the Intellectual Property and Patent Law groups. Beth has experience litigating in numerous federal district courts across the United States, as well as before the Federal Circuit, U.S. Patent…

Elizabeth (Beth) Shrieves is an associate in the Litigation Department and a member of the Intellectual Property and Patent Law groups. Beth has experience litigating in numerous federal district courts across the United States, as well as before the Federal Circuit, U.S. Patent and Trademark Office, and International Trade Commission. Beth’s experience covers a wide variety of products and technology involving software and applications, medical devices and technology, electrical hardware, telecommunications, supercapacitors, automotive engines, weapon systems, and consumer products. She has counseled clients throughout all stages of litigation, including both plaintiff and defense work, from pre-suit investigation, initial pleadings, discovery, trial, and through appeal.

Beth graduated from George Mason University School of Law where she earned her J.D., Magna Cum Laude. Prior to earning her law degree, she received a bachelor’s degree from Wake Forest University where she also graduated Magna Cum Laude. Beth also previously worked as a paralegal where she gained a deeper understanding of the nuances of commercial litigation.

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